Canadian housing slump deepens with first drop in values in decades

[Anonymous]

Any growth in the Canadian economy over the past four years has come as a result of buoyant US demand, but more importantly, but more importantly and more dangerously the most indebted consumers in the OECD. Canadian growth has been lowered to 1.5 per cent for this year. With investment falling thanks to the Trudeau and some premiers insane politicies, we better hope the Trump bump holds up. That is really the only thing we will have going for us moving forward.





Canadian home values fell last year for the first time in three decades amid falling prices in some of the country's priciest markets, even as debt burdens increased.



The value of residential real estate in Canada held by households dropped C$30 billion ($22.5 billion) in the fourth quarter to C$5.10 trillion, from C$5.13 trillion in the same quarter the previous year, Statistics Canada reported Thursday. The 0.6 percent decline is the first decrease in country-wide home values in data going back to 1990.



Households meanwhile saw their debt burdens rise at the end of last year, with the debt to disposable income ratio hitting a record 174 percent in the fourth quarter. The worsening reflects a sharp slowdown in economic growth at the end of last year.



Canadians are also spending a larger proportion of their income on servicing that debt. The debt service ratio -- the proportion of a household's income that goes to paying off principal and interest on debt -- rose to 14.9 percent in the quarter, the highest level since the fourth quarter of 2007.



In a separate report, the agency said new home prices fell 0.1 percent in January from a year earlier -- the first decline since 2009. While the index doesn't include condominiums, the weakness was driven by declines in the Toronto and Vancouver regions, which fell 1.5 percent and 0.3 percent respectively.

https://www.msn.com/en-ca/money/topstories/canadian-housing-slump-deepens-with-first-drop-in-values-in-decades/ar-BBUMHtK?li=AAggNb9&ocid=mailsignout">https://www.msn.com/en-ca/money/topstor ... ailsignout">https://www.msn.com/en-ca/money/topstories/canadian-housing-slump-deepens-with-first-drop-in-values-in-decades/ar-BBUMHtK?li=AAggNb9&ocid=mailsignout

[Anonymous]

A thirty billion dollar drop in the value of Canadians' primary source of wealth..



This is on top Canada losing over one hundred billion dollars of investment under our pm....depressing.

 

[Frood]

Housing appreciation is a false economy-investment anyway and more like betting on dogs at the track.

[Anonymous]

Housing appreciation is a false economy-investment anyway and more like betting on dogs at the track.

It's one of the primary ways people have built their net worth in this country..



But, we were lending money to people who couldn't afford to pay it back..



I hope we're not at the beginning of something like the sub prime mortgage crisis the USA had in 2008.

[Frood]

Live by the sword die by the sword I guess.

[Anonymous]

Live by the sword die by the sword I guess.

The government and banks were the enablers.

[Frood]

Still though, expecting exponential and sustained growth on over-leveraging was and remains silly.

[Anonymous]

Still though, expecting exponential and sustained growth on over-leveraging was and remains silly.

It wasn't always like that..



But, they should've put an end to five per cent down for first time buyers when mortgages became unmanageable.

[Odinson]

Buy a diamond necklace.. From Tiffany..



Diamonds are forever..





And you would feel like Audrey Hepburn.

[Frood]

They're producing more and more synthetic diamonds these days.

[Odinson]

They're producing more and more synthetic diamonds these days.

Thats like making an exact copy of the Mona Lisa..



I´d give you 5 bucks for it.

[Anonymous]

Northern Canada has a huge diamond mine.

[Gaon]

We rent, so I don't mind a drop in the price of housing.

[Anonymous]

I don't want house prices to fall at least until we sell ours and get the hell out of Canada.

[Anonymous]

Any growth in the Canadian economy over the past four years has come as a result of buoyant US demand, but more importantly, but more importantly and more dangerously the most indebted consumers in the OECD. Canadian growth has been lowered to 1.5 per cent for this year. With investment falling thanks to the Trudeau and some premiers insane politicies, we better hope the Trump bump holds up. That is really the only thing we will have going for us moving forward.





Canadian home values fell last year for the first time in three decades amid falling prices in some of the country's priciest markets, even as debt burdens increased.



The value of residential real estate in Canada held by households dropped C$30 billion ($22.5 billion) in the fourth quarter to C$5.10 trillion, from C$5.13 trillion in the same quarter the previous year, Statistics Canada reported Thursday. The 0.6 percent decline is the first decrease in country-wide home values in data going back to 1990.



Households meanwhile saw their debt burdens rise at the end of last year, with the debt to disposable income ratio hitting a record 174 percent in the fourth quarter. The worsening reflects a sharp slowdown in economic growth at the end of last year.



Canadians are also spending a larger proportion of their income on servicing that debt. The debt service ratio -- the proportion of a household's income that goes to paying off principal and interest on debt -- rose to 14.9 percent in the quarter, the highest level since the fourth quarter of 2007.



In a separate report, the agency said new home prices fell 0.1 percent in January from a year earlier -- the first decline since 2009. While the index doesn't include condominiums, the weakness was driven by declines in the Toronto and Vancouver regions, which fell 1.5 percent and 0.3 percent respectively.

https://www.msn.com/en-ca/money/topstories/canadian-housing-slump-deepens-with-first-drop-in-values-in-decades/ar-BBUMHtK?li=AAggNb9&ocid=mailsignout">https://www.msn.com/en-ca/money/topstor ... ailsignout">https://www.msn.com/en-ca/money/topstories/canadian-housing-slump-deepens-with-first-drop-in-values-in-decades/ar-BBUMHtK?li=AAggNb9&ocid=mailsignout

That's a lot of wealth wiped out.